$200 million assurance keeps Delaware North in casino race
ALBANY — Delaware North met a Friday deadline by Gov. David A. Paterson to confirm that it can quickly pay a $200 million upfront franchise fee payment if it were selected among a half-dozen bidders to operate a big new casino at a Queens racetrack.
The governor last week suddenly changed the terms of the bidding process for the long-stalled Aqueduct casino project by saying only bidders who could pay the state $200 million within 30 days of signing a deal would be considered for the lucrative contract that will feature New York City’s only legally operating casino. The governor wants to use the money in the state’s current fiscal year to help close a $3.2 billion budget gap.
William Bissett, president of Delaware North Companies Gaming & Entertainment, which is the lead partner in a group vying for the deal, said in a statement Friday that the Buffalo company has sent a letter to Paterson “confirming our ability to pay” the $200 million.
“We remain confident that we are the best choice for the community and the state and look forward to a decision in the near future,” Bissett said.
There are now five entities vying for the 30-year exclusive contract for a casino at the Queens facility. It would be a major expansion for Delaware North, which already operates gambling facilities at tracks in New York and elsewhere. Steve Wynn, the Las Vegas casino mogul, suddenly dropped out of the running this week, leaving the remaining groups and their partnerships of developers, construction companies, politically connected individuals and gambling and entertainment entities such as Hard Rock Entertainment, MGM Mirage and Harrah’s, which is one of Delaware North’s partners.
Delaware North last year won the contract to develop the Aqueduct casino, but the deal fell apart in the spring when credit issues during the height of the recession made the company unable to raise the $370 million it promised the state. The bidding process was started over, though it has morphed many times and is well past an August deadline the state was hoping to meet for a decision.
Delaware North’s new bid calls for a $300 million payment to the state, which includes the $200 million upfront payment. The final selection is up to Paterson and the heads of the Assembly and Senate.
By Friday evening, four of the five remaining bidding groups had confirmed to Paterson that they can meet the $200 million requirement.
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